This week’s guest blog post is contributed by Kelly Owens, Senior Manager, Automotive Industry Strategy, Oracle Data Cloud.
Thirty major car brands with nearly 300 models, 18K dealers, a six-year average lifecycle between automotive purchases and $15B in marketing spend.
Automotive marketing is not for the faint of heart; it’s complex, fragmented and highly competitive.
In this complicated, multi-layered landscape, auto marketers are constantly looking for ways to coordinate and simplify their efforts—cross-tier coordination is often at the top of this list.
By coordinating efforts among Tiers 1, 2 and 3, automotive marketers decrease fragmentation, increase measurability, find new efficiencies and reduce waste—all while streamlining messaging throughout the tiers for a better customer experience.
We’ve curated three best practices:
The more you coordinate messaging across tiers, the more opportunities you have to reach customers across all phases of the shopping process—from awareness to the dealership lot.
To ensure success, make sure the audiences you reach match your marketing goals at each stage of the purchase funnel.
Offline ownership and lifestyle data are suited to awareness building, lifestyle and branding campaigns; while in-market intent signals and active shopping data can be matched to lower funnel campaigns.
The side benefit of this coordination? Aligning audience strategies to specific tiers and shopping phases is a straightforward way to reduce duplicated audience usage and costs across tiers.
In a flattening market where conquesting is essential, an audience playbook crafted around your buyer conquest sources ensures you’re keeping your car on the consideration list.
It doesn’t have to be hard. Oracle Data Cloud can build a customized audience strategy catered to the tiers and your goals, whether it be awareness, site actions or sales.
Any automotive marketer will tell you the lack of coordination among the tiers drives up costs as each tier bids on the same people.
While this is an area ripe for improvement, the first step is making sure you don’t bid on the wrong people—the ones unlikely to buy your car (or any car)—before worrying about overdoing it on reaching likely buyers of your vehicle.
The clearest culprits for waste? The never buyers. The people who will never buy your vehicle—because it’s not a match for their lifestyle (a luxury vehicle for a lower-income household or a sub-compact car for a family of seven) or they have a clear pattern of loyalty to another brand.
A household that’s purchased a luxury sedan the last three times they’ve bought a vehicle is probably going to buy a luxury sedan again—your dollars are better spent on nomads who jump from brand to brand.
As audience-first marketing becomes increasingly popular, automotive marketers are looking for ways to minimize waste. Overlap is an inevitable—and important—part of the car-buying journey.
The way people shop is not linear. Clean distinctions between different phases of the funnel isn’t possible. People add and subtract vehicle choices throughout their buying process—especially when they’re closest to purchase.
Many consumers often pre-shop and then delay their vehicle purchase, causing them to be misclassified initially as low funnel and then as out of market when they re-enter the buying journey.
Branding and awareness are critical throughout the buying process. As competition intensifies, keeping car shoppers excited about your brand and the deal they can get are important to building value in the customer’s mind.
The more you coordinate messaging across tiers, the number of opportunities to build value and connect with future customers grows.
Numerous studies conducted by Oracle Data Cloud show that consumers exposed to media across multiple tiers are more likely to buy than those reached by just one tier’s worth of media.
When you’re reaching the right people who are likely to buy, reaching them across multiple tiers of advertising provides considerable impact.
While cross-tier audience coordination is complex, the benefits far outweigh the costs.
Whether you’re reaching people with the right creative for their stage in the buyer journey, or you’re consolidating strategies to reduce wasted spend across tiers, your data experts at Oracle Data Cloud can help.
About Kelly Owens
As an Industry Strategist for Oracle Data Cloud’s Automotive vertical, Kelly connects marketing expertise and automotive industry knowledge to craft data-driven audience solutions for automotive marketers.
With direct experience leading Tier 3 dealer marketing, Kelly connects insights straight from the showroom floor to the needs of automotive marketers across Tiers 1 through 3.